Twitter CEO Steps Down Following Years of Slow Growth

Dick Costolo, CEO of Twitter (pictured on left), announced on Thursday that he would be stepping down as head of the social media company, effective July 1. Jack Dorsey (pictured on right), the companyEUs chairman and co-founder, has been named interim CEO while the board of directors begins looking for a permanent replacement.

Costolo said he would continue to serve on TwitterEUs board of directors, while Dorsey will continue to serve as CEO of Square Inc., the payments and financial services company he co-founded after Twitter.

Although the company grew rapidly into one of the most popular sites on the Internet, user growth has flat-lined recently. In April, the company reported a net loss of $162 million for the first quarter, despite a 74 percent climb in revenue. The news caused shares to plunge, and the company was forced to lower its estimates for the rest of the year.

No Coherent Strategy

During a conference call with investors following the announcement, Costolo said that he was leaving the company of his own accord. He said that he had first broached the idea of stepping down with the board a year ago. Costolo added that he thought staying on as CEO while the board searched for his replacement would be a EUdistractionEU for the company.

It is unlikely that many of TwitterEUs investors will be sorry to see him go. The company's woes have led several investors to call for a change at the top. In April, Twitter investor Chris Sacca wrote a blog post outlining several problems facing the company, including the fact that for as many users as Twitter has, nearly one billion people have tried the service only to abandon it. However, investors are also concerned about Twitter's ability -- or inability -- to attract online advertising.

Some said the company...

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